Business Analysis: Singapore International Airlines

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Singapore International Airlines

Introduction Singapore International Airlines is a fully known brand name in the airline industry. It was found in 1947 on May 1st , at that time Singapore International Airlines was known under the name Malayan Airways Limited (MAL) in a joint venture between the Malaysia and Singapore governments, serving primarily the South East Asia region. In 1965, Singapore separated from Malaysia to become an independent and sovereign state, the two governments agreed to set up separated airlines. Singapore Airlines was born in 1972 and keep operating until now. ("Singapore Airlines-Our", 2014). SIA was being established in a particular situation with other airlines at that time, because they don't have the domestic flight, they was forced to immediately start competing with international airlines for routes, securing flight slots, airport access, landing rights, and attracting a new customer base. SIA faced a lot of problems from the beginning and with this difficult beginning they created high competitiveness and try to build up their brand. Nowadays, Singapore Airlines has become the most successful airline company from an Asian country. The company currently have 143 destinations in at least 41 countries in the
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(Mckay&Marshall, 2004). Bargaining power of suppliers is very high in airline industry. To illustrate, if the jet fuel price increase, SIA has to increase its fuel surcharge for tickets, SIA said that jet fuel prices have been increasing and that fuel accounts for 40 per cent of SIA. The price will increase of between US$2 (S$2.50) and US$28 per sector, depending on the distance and class of travel. ( "Singapore Airlines to",
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